Qld debt forecast to skyrocket to $180bn

Deputy Premier Cameron Dick has confirmed Queensland’s debt is forecast to hit $180bn by 2027-28, but says he is sure the state would be able to maintain its AA+ credit rating.

Treasurer Cameron Dick. Pic: Lyndon Mechielsen

Deputy Premier Cameron Dick has confirmed Queensland’s debt is forecast to hit $180bn by 2027-28, following Labor’s whopping $9bn in election pledges to be paid for through borrowings.

Debt was initially predicted to reach $172bn, but will increase by a further $8bn over the next four years.

Mr Dick said he was sure Queensland would be able to maintain its AA+ credit rating under the new forecast.

“But I just also want to say this, $180bn would be 30 per cent of gross and state product at the end of the forward estimate,” he said.

“Now if you go back to Covid, when I did the 2020 budget, we projected that debt levels would be 33 per cent of race state product … (and) we kept our AA+ credit rating every year since.

“So we are well within those metrics and parameters to maintain our credit rating and to continue to borrow to deliver.”

Mr Dick assured that election borrowings had not affected the predicted return to surplus.

The state will still be operating in deficit for the next two years.

He said in contrast, the LNP would need to cut $10m per day before handing down a June Budget, if it wanted to balance the state’s operating position.

“The two years of deficits, $2.6bn for this financial year and $515m for the next financial year will have to be wiped out, so they had to find $3bn immediately to bring the budget back into operating balance,” he said.

“That means they have to cut $10m a day, each and every day, until the 30th of June next year to bring the budget back into balance.”

Mr Dick was unable to confirm whether he supported the introduction of truth in advertising laws, but said he “supported everything the Premier said”.

“I think he nailed that completely,” he said.

“And when the LNP stops lying, we’ll start thinking about that sort of law.”

Originally published as Qld debt forecast to skyrocket to $180bn